By Jenna Chilingerian
April 30, 2012

The U.S. Environmental Protection Agency (EPA), on April 18, issued its finalized standards to reduce harmful air pollution associated with the production of oil and natural gas. In particular, the new standards, as required by the Clean Air Act, reduce implementation costs by requiring operators of natural gas wells to use cost-effective technologies that capture escaping natural gas from wells, storage tanks, and other equipment. This cost-effective approach to natural gas operations is likely to reduce harmful emissions that contribute to smog and health issues by 95 percent. Additionally, these new rules will result in $11 to $19 million in savings for the industry each year.

According to EPA, companies in the natural gas industry should benefit from the ability to capture and sell the natural gas that would otherwise have escaped. The finalized oil and natural gas air pollution standards are separated into two phases to ensure that emissions reduction technology is available when needed. From now until January 2015, the first phase requires owners and operators to flare their emissions or use emissions reduction technology called "green completions" that can already be found at wells. After January 2015, the second phase will require all new fractured wells to use green completions. This second phase does not require new federal permits, but rather creates clear standards by enhanced reporting to ensure transparency, accountability, and compliance.

Natural gas is an important domestic energy resource. The finalized standards have been put into place, says EPA, to ensure the expansion of the production of natural gas while reducing the negative health impacts associated with the operation and production of a resource that is essential to the nation’s clean energy future. For more information, go to the website www.epa.gov/airquality/oilandgas